Best Umbrella Insurance Companies

Yes, umbrella insurance is worth it if the value of your assets exceeds your liability insurance limits. Umbrella policies are relatively inexpensive so they are worth the investment if you have significant assets you're looking to protect from costly liability claims. 

Umbrella insurance provides additional liability coverage, typically starting at $1 million, and it usually costs at least $150 to $300 per year. Umbrella policies also cover certain situations that don't typically fall under liability insurance, like libel and slander.

How To Decide If Umbrella Insurance Is Worth It 

1. Add up the value of your assets, including your home equity, personal savings, and retirement accounts.
2. Compare your assets to the limits of your auto or homeowner's liability insurance policy. If your assets exceed the current limits, then you should consider getting umbrella insurance.
3. Consider any factors that would make you more likely to have a liability claim filed against you, like owning a swimming pool or a dog.

Most home or auto liability insurance policies can only be purchased with maximum limits of $300,000 or $500,000, depending on the insurer. While these limits may be high enough for the average person, wealthier individuals with more assets may need even more protection. That's when umbrella insurance is worthwhile. To learn more, check out WalletHub's guide to umbrella insurance.

A $1 million umbrella insurance policy costs about $150 to $300 a year. Higher coverage amounts will add $50 to $75 per year to the cost. What you actually pay will depend on the risk of insuring you, where you live, how many cars and homes you have, and the size of your family.

How Much Umbrella Insurance Typically Costs

Umbrella insurance covers home and auto claims that exceed the limits of your liability insurance, in addition to other liability claims like libel and slander. Most companies will require you to buy a minimum level of liability coverage on a car or house before allowing you to purchase an umbrella policy. For example, Geico requires you to have a minimum of $300,000 in liability coverage on your home to qualify for their homeowners umbrella insurance policy.

Factors That Affect Umbrella Insurance Costs

• The overall risk you present to the insurance company
• The state where you live
• The size of your household
• How much property you own
• How many vehicles you own
• The presence of teen drivers your family
• Your credit score

To learn more about umbrella coverage, check out WalletHub's guide to umbrella insurance.

You need enough umbrella insurance to make up the difference between your liability insurance limits and your net worth, in order to protect your assets if you are faced with a major liability claim or lawsuit. Umbrella insurance limits usually start at $1 million and can go as high as $10 million, depending on the insurer.

A basic $1 million umbrella policy typically costs between $150 and $300 annually, with each additional $1 million in coverage adding up to $75 to the price. Since the cost is relatively inexpensive, it's usually best to err on the side of getting too much umbrella insurance rather than too little.

Recommended Umbrella Insurance Coverage 

It's generally recommended that you buy enough umbrella insurance to cover your assets, including your home equity, personal savings, and retirement accounts. For instance, if your assets equal about $700,000, it's a good idea to buy $1 million in umbrella insurance, since this is usually the lowest amount available.

Besides your own finances, you should also consider things that could increase your odds of being liable for someone's injuries at some point, including owning a dog or having a teenage driver in your household.  

Ultimately, it's important to remember that if you don't have enough insurance to cover your net worth, your assets could be seized to cover damages that exceed your liability insurance limits. Because of this, umbrella insurance is usually a wise investment for individuals with a particularly high net worth.

To learn more, check out WalletHub's guide to umbrella insurance.

You need an umbrella policy if your total assets exceed your car or home insurance policy limits or if you have a high risk of being sued. An umbrella policy is an optional form of liability insurance designed to supplement existing coverage, and it typically costs $150 to $200 annually for $1 million in coverage. As a result, households with a high net worth are the most likely to need umbrella coverage.

When You May Need an Umbrella Policy

• Your assets are greater than your home or car insurance policy limits.
• Your occupation puts you at high-risk for a lawsuit.
• You own a trampoline, hot tub, or swimming pool.
• You ski, hunt, surf, or participate in another hobby where you could injure someone else.
• You own property, especially rental or investment properties.
• You have a dog with a restricted breed or a bite history.
• You are a public figure.
• You own guns.
• You frequently host guests.

A common rule of thumb is that households should have an umbrella policy if they have $1 million or more in assets. Umbrella policies are also a good investment for people whose assets will likely increase considerably in the future, as liability settlements can sometimes result in wage garnishment. For example, medical students are often advised to purchase umbrella coverage to protect their future income.

To purchase an umbrella policy, you will usually need a car insurance policy with high liability limits. For instance, Geico umbrella coverage requires at least $300,000 in bodily injury liability insurance and $100,000 in property damage liability coverage. 

For more information, check out WalletHub's complete guide to umbrella insurance.

Stand-alone umbrella insurance is an umbrella policy that offers coverage to customers who use a separate provider for their home or auto insurance. Stand-alone umbrella coverage is not very common, and it is not offered by any major insurers. Umbrella insurance supplements the liability limits of a home or auto policy, after all, and an insurance company will almost always require customers to get all of the necessary coverage from them.

Companies That Offer Stand-Alone Umbrella Insurance

• RLI Insurance
• American Alternative Insurance Corporation (AAIC)
• United States Liability Insurance (USLI)

Stand-alone umbrella insurance is a good option if you need higher limits than what your auto or home insurer offers, or if another company has cheaper coverage.

The starting rate for umbrella insurance is generally $150 to $300 annually for a $1 million policy. For each additional $1 million that you add to a policy, the rate will typically go up $50 to $75 per year.

To learn more, check out WalletHub's guide to umbrella insurance.

Umbrella insurance works by covering excess liability costs after your auto, home, or other insurance limits have been exhausted. Umbrella insurance can also cover things that are not covered under your other liability policies, like libel or slander.

How Umbrella Insurance Works: Step by Step

1. Someone makes a claim against you

This might happen if you cause a massive car accident, a non-family member gets injured at your home, or if your child or dog seriously injures someone. These liability claims are made against your relevant personal liability coverage, like homeowners liability or auto liability. 

2. Your current liability insurance applies up to its limits

After a claim is filed, your auto or homeowners liability coverage will pay up to its limits. Typically, auto and homeowners liability coverage can be bought with limits of no more than $300,000 - $500,000.

3. Your umbrella insurance covers the remaining claim

If the claim against you is larger than what your auto or homeowners insurance will cover, your umbrella policy will step in to cover the remaining balance.  

The most basic level of umbrella insurance will cover up to $1 million in excess liability. This is an impressive amount given that umbrella insurance usually only costs between $150 and $300 per year.

To learn more, check out WalletHub's guide to umbrella insurance.

An umbrella insurance policy does not cover your own injuries or damage to your personal property. In addition, personal umbrella insurance will not cover intentional acts, criminal behavior, damage caused while you're performing business activities, or damage from certain dogs or vehicle types. If you need umbrella insurance for business purposes, you can purchase a commercial umbrella policy.

What Umbrella Insurance Does Not Cover

• Your own injuries or property damage
• Property damage or injuries that you intentionally cause
• Damage that you cause while committing a criminal act
• Property damage or injuries that you cause while performing business or professional activities
• Any liability that you assumed through a contract prior to the incident
• Property damage or injuries caused by dog breeds or recreational vehicles that are specifically excluded from your policy

Because umbrella insurance extends the limits on an existing home or auto liability insurance policy, it does not apply to anything that is specifically excluded from the underlying coverage. To learn more, check out WalletHub's guide to umbrella insurance.

Umbrella insurance in Florida is liability insurance that covers claims above the limits of existing car and home liability policies. For example, if your auto liability coverage limit is $20,000 per accident, but you cause a pileup that does $300,000 in damage, umbrella insurance could cover the remaining $280,000.

Assuming you have state-minimum auto coverage, umbrella insurance in Florida will cover you for liability totaling more than your car insurance will cover. Additionally, umbrella insurance in Florida will cover certain claims that are not covered by the underlying insurance, like for slander and libel.

What Umbrella Insurance Covers in Florida

• Liability in excess of auto/home insurance policy limits
• Legal defense costs related to liability claims
• Libel and slander
• Malicious prosecution
• Psychological harm and mental anguish
• Liabilities when traveling overseas
• False arrest

To learn more, check out WalletHub's guide to umbrella insurance.

You should get umbrella insurance if your net worth is at least $1 million. Umbrella insurance supplements existing home and auto liability insurance, and it usually costs between $150 and $300 annually for the minimum $1 million in coverage.

You may also want to purchase an umbrella policy if your net worth is lower but still exceeds your home and auto liability insurance limits. After all, if you cause a multi-vehicle accident while driving, for example, you would be responsible for the accident victims' medical bills. And if your personal liability limit is $300,000 while the total cost of the medical bills adds up to $400,000, then there would still be $100,000 left for an umbrella policy to cover.

Similarly, you should consider umbrella insurance if you are at a high risk for being sued because of your job, your hobbies, or because you own high-risk leisure items like a pool or trampoline.

When You Should Get Umbrella Insurance

• Your assets are greater than your home or car insurance policy limits.
• Your work puts you at high-risk for a lawsuit.
• You own a trampoline, hot tub, or swimming pool.
• You participate in a hobby where you could injure someone else.
• You own rental or investment properties.
• You have a dog with a bite history.
• You are a public figure.
• You own guns.
• You frequently host guests.

To learn more, check out WalletHub's guide to umbrella insurance.

The difference between excess liability and umbrella insurance is that excess liability insurance only increases the limits of an underlying policy. In contrast, umbrella insurance broadens the scope of the existing coverage in addition to increasing its limits. Umbrella insurance can even protect you when you are sued for things like slander, libel, false arrest, and character defamation.

Differences Between Umbrella and Excess Liability Insurance

With an excess liability policy, anything not covered by your primary insurance policy is also not covered by excess liability. On the other hand, umbrella insurance will extend multiple existing policies while also covering some claims that aren't already covered by a liability policy.

If you want to learn more, check out WalletHub's guide to umbrella insurance.